Replicating smart city technologies across multiple districts or across Europe is a major challenge. We need faster deployment of existing and proven pilot initiatives to stand a chance of hitting environmental targets. Deployment and adoption of solutions from a blended social and economic aspect is key to accelerating this roll out. Mauritz Knuts of Vaasa Region Development Company and Co-Chair of a European working group on replicating smart city solutions about scaling up and transferring smart city technologies spoke at a Smart Tampere event in early 2020 to discuss how to make things happen.

1. Social and
economic aspects
that are necessary
for a successful
replication

2. Social and economic aspects that are necessary for a successful replication
Anchored in 3 lighthouse
and 4 fellow cities
Lighthouse cities:
Follower cities:
Gothenburg
Utrecht
Nice Côte d’Azur
Focsani
Alexandroupolis
Vaasa
Santa Cruz de Tenerife

3. Social and economic aspects that are necessary for a successful replication
Own experiences

4. Social and economic aspects that are necessary for a successful replication
Own experiences

5. Social and economic aspects that are necessary for a successful replication
Own experiences

6. Social and economic aspects that are necessary for a successful replication
Own experiences

7. Social and economic aspects that are necessary for a successful replication
Own experiences

8. Social and economic aspects that are necessary for a successful replication
Own experiences

9. Social and economic aspects that are necessary for a successful replication
Own experiences

10. Social and economic aspects that are necessary for a successful replication
Own experiences

11. Social and economic aspects that are necessary for a successful replication
Own experiences

12. EU Smart Cities Information System - SCIS
Social and economic aspects that are necessary for a successful replication

13. EU Smart Cities Information System – SCIS
FROM REPLICATING TECHNOLOGIES TO
INSPIRING SOLUTIONS
From a narrow techno-economic perspective,
the aim of a smart city programme is to
encourage the replication of technological
solutions. However, we argue that a
successful approach to replication needs to
include further dimensions.
This brings us to pursue what Peter Rathje
calls the city journey
Social and economic aspects that are necessary for a successful replication

14. European Innovation Partnership on Smart
Cities and Communities – EIP-SCC
The Smart City Guidance Package (SCGP) helps to
plan and implement smart city and low energy district
projects in an integrated way by describing common
situations and giving real-life examples. It bundles the
generously shared experiences and expertise of cities,
businesses, citizens, research institutes and Non-
Governmental Organisations (NGOs) that work
together in the European Innovation Partnership Smart
Cities and Communities (EIP-SCC).
Social and economic aspects that are necessary for a successful replication

15. Social and economic aspects that are necessary for a successful replication

16. Social and economic aspects that are necessary for a successful replication

17. societal and citizen engagement
“a specific innovation can no longer be seen as
the result of predefined and isolated innovation
activities but rather as the outcome of a complex
co-creation process involving knowledge flows
across the entire economic and social
environment.”
Social and economic aspects that are necessary for a successful replication
Social aspects

18. Social and economic aspects that are necessary for a successful replication
ALL ABOARD!

19. Social and economic aspects that are necessary for a successful replication

20. Social and economic aspects that are necessary for a successful replication

21. FROM PAYBACK TIME TO SECONDARY BENEFITS AND WILLINGNESS TO PAY
From a financial point of view, energy and CO2 measures are often judged against a narrow
payback logic, without taking into account secondary benefits for society or the principle of
willingness to pay.
For public authorities in particular, it would be beneficial to account financially for such benefits like
reduced social and health expenditures. For societies as a whole, the benefits of a cleaner and safer
environment, reduced fossil fuel dependency and energy poverty, local employment in the green
economy and a higher quality of life for all citizens will amount to billions of Euros. Honouring this
effect, however, requires accounting principles that break through the traditional competence and
budgetary silos.
Social and economic aspects that are necessary for a successful replication
Economic aspects

22. Technical and financial readiness checks
Project are assessed on the basis of two main criteria, the technical readiness and the financial
readiness.
The project associated with the application must be well advanced in technical terms (design,
approvals, permits, consultation, interfaces, procurement, etc.) and financial terms (business case
development, availability of funding-affordability, availability of private sector financing and
commitment of the latter in terms of achieving financial close within the timescales set in the call,
etc.).
Social and economic aspects that are necessary for a successful replication
Economic aspects

23. Key matters considered by banks/investors when financing a project
• Demand/needs analysis supporting the project decision
• Option analysis and a good quality Cost-Benefit Analysis based on realistic data and forecast
• Relationship of the project with the existing infrastructure and impact of the former on the existing sector (transport/energy) system
• Medium-term investment plan and business case to support and justify the project and/or the replacement strategy of previous fleets or infrastructures. The basis should be the transport/energy
• needs of the reference area in the city, in conjunction with operators’ organisation and structure for Operation and Maintenance and with the overall city mobility/energy organisation and policy.
• Technical feasibility, status of design development, proven quality of the assessment of project costs (whole life project costs approach)
• Strength of the political support to the project, especially in terms of affordability and funding
• Financial analysis of the project and its impact on public budget Status in terms of Environmental Impact Assessment, required studies and their approvals, stakeholder consultation/approvals, administrative/statutory
approvals (including at city masterplan level) and all project interfaces
• Clear project structure (who does what) including risk allocation (who takes what risk), in terms of project preparation, procurement, construction, operations, revenue risk, repayment of the loan, etc.
• (the list of project risks is much more extensive, this are just an example)
• Status of the procurement process and procurement strategy for the delivery of the project
• Clear identification of the funding and financing structure, including identification of the borrower
• Credit risk assessment of the borrower and/or guarantor associated with the loan
Social and economic aspects that are necessary for a successful replication
Economic aspects

24. Smoothing the transition
to smart & sustainable

25. Social:
• Start early!
• Include everyone
• Take it seriously
• Understand drivers and barriers
• Use all available tools
Economic:
• Make sure the solution is feasible
• Map all available and suitable funding options
• More than just payback time
• Reduce risks and costs while still keeping a
high enough level of innovation
• Be honest
Social and economic aspects that are necessary for a successful replication
Summary

26. Social and economic aspects that are necessary for a successful replication
Tools: Good practices and tools for citizen
engagement
• Smarticipate. Opening up the smart city
• WeLive. A new concept of public administration based on citizen co-created
• mobile urban services
• The Inclusive Manifesto on Citizen Engagement

27. Social and economic aspects that are necessary for a successful replication
Tools: the Citizen Engagement Ladder
1. Awareness raising
2. Mapping
3. Scoping
4. Co-creation and Design Scenarios
5. Touchpoints and influencers
6. Feedback loops

28. Social and economic aspects that are necessary for a successful replication
Tools: A Sustainable Business Model Dash-board
tool: Spider graphs based on the TIS methodology

29. Social and economic aspects that are necessary for a successful replication
Tools: Estimating the Replication Potential of
Smart Solutions in different contexts

30. Social and economic aspects that are necessary for a successful replication

31. Social and economic aspects that are necessary for a successful replication